Estimating Financial Trends by Cubic B-Spline Fitting via Fisher Algorithm

Trends have a crucial role in finance such as setting investment strategies and technical analysis. Determining trend changes in an optimal way is the main aim of this study. The model of this study improves the optimality by cubic b-spline fitting to the equations to reduce the error terms. The results show that cubic b-spline fitting is more efficient compared to the first order Fisher Method and original Fisher Method. This method may be used to determine regime switches as well.